Use Of International Quality Local Products, Accelerating National Economic Recovery
Illustration/ Photo: IST

JAKARTA - One way to accelerate the recovery of the national economy is through an increase in domestic product expenditures and small micro and cooperative business products (MSMEs). This was conveyed by the Deputy Chairman of the DPR for Korkesra, Abdul Muhaimin Iskandar (Gus Muhaimin) when he was the Keynote Speaker in the National Seminar of the Inspectorate Utama Secretariat General of the DPR RI (Ittama Secretariat General of the DPR), this week.

Citing data from the Financial and Development Supervisory Agency (BPKP), Gus Muhaimin said that in 2022 the allocation of goods and services as well as government capital will be around Rp. 1,000 trillion. Of this figure, 40 percent have the potential to be used for the purchase of domestic products and MSME products. Furthermore, the Central Statistics Agency (BPS) predicts that if this potential is realized in Semester I of 2022, it can grow an economy of 1.7 percent.

Previously, on March 30, President Joko Widodo had issued Presidential Instruction of the Republic of Indonesia (Inpres) Number 2 of 2022 concerning the Acceleration of Increasing the Use of Domestic Products and Micro Business Products, Small Enterprises, and Cooperatives (UMKK) in order to make the National Movement Proud to be Made in Indonesia in the Implementation of Government Goods/Services Procurement.

"Through the Presidential Instruction, the President instructs every government agency to maximize the use of domestically produced goods/services or GDP in accordance with its authority," he said.

Gus Muhaimin assessed that the implementation of the P3DN program could provide space for the national industry to increase production capacity and quality of goods and services so that they are able to compete independently in the international market. "P3DN is also an additional protection for the potential for weakening the exchange rate," he said again.

Separately, the Vice President of the Tatalogam Group, Stephanus Koeswandi also appreciated the steps that had been taken by the government, ranging from the executive body, legislature and all related parties.

As an entrepreneur in the steel industry sector, he also agreed that efforts to accelerate national economic recovery by increasing domestic product spending must also be followed by significant improvement in quality. The goal of course is to increase the competitiveness of these products both in the country and abroad.

By being accompanied by improving quality, of course, economic recovery can be faster. One way is according to the Ministry of Industry's strategy, namely industrial downstreaming. This strategy is able to increase the added value of the commodities we have. With downstreaming, in the future the commodities exported are no longer raw materials, but in the form of semi-finished goods or finished goods. And if the upstream material is of quality, downstream the final products produced will also be of quality. For this reason, we continue to increase the use of domestically quality steel products that are export quality and establish cooperation from upstream to downstream between domestic companies, explained the leadership of the Baja Lapis Aluminum Seng (BJLAS) and the largest Baja Lapis Seng (BJLS) company in Indonesia.

Stephanus menjelaskan, kualitas produk-produk nasional saat ini diakui sudah sangat baik. Produk-produk BJLAS dan BJLS dari Tatalogam Group sendiri yang dihasilkan 100 persen dari tanah air ini, sudah banyak ditemukan di pasar mancanegara mulai dari Asia hingga Amerika. Selama pandemi, perusahaan dengan 100 persen Penanamandal Dalam Negeri (PNDM) ini bekerja sama dengan PT Krakatau Steel sebagai penyedias bahan baku melakukan eksp ke berbagai Negara.

This indicates that 100 percent of Indonesia's products and the quality of exports we have have are recognized worldwide. However, we are also obliged to keep the national market needs met so that all levels of society can also feel the economic impact of the use of native products made in this country," said Stephanus again.

Stephanus added, to meet the needs of this homeland, the company, which has just been awarded as The Best Mild Steel Manufacture Utilizing the Highest Domestic Component Levels, in the 2022 Urbancity Awards, also partnered with MSME actors. This step was taken because according to the MSME contribution record, it reached the range of 61 percent of the National GDP and absorbed 97 percent of the total workforce.


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